Three Reason why you should buy Life Insurance Before the Age of 30.

If you are below 30 years of age, you probably feel you are invincible. You have a good job, in a happy relationship and nothing can go wrong. Unless you are God or some invincible vampire, unforeseen events can change all that in a jiffy. While people may call it luck or fate, your loved ones and people who are dependent on you are often left to pick up the pieces.  You need to ensure that your loved ones are taken care of.

1.   Earlier you buy cheaper the premium

Most of us know that it is always better to start saving early. Effect of compounding means that small savings done early and regularly will results in large savings in your older years. Same is true about life insurance. If you buy life insurance at an early age, you will pay lot less for same amount of cover. The following graphs shows you what you will pay for a cover of 1 Crore up to 65 years of age for a non-smoking male.

As you pass the age of 30, premiums tend to shot up dramatically.

2.   Avoid age and lifestyle related issues

Not only does premiums shoot up after the age of 30, but you may also find it difficult to get cover. Let me explain why. Current day sedentary life style means that one is more likely to suffer from age and lifestyle related diseases early and often in the thirties. Insurers see these diseases are major risks and tend to be very careful in providing cover to people with diseases like Diabetes, hypertension etc. You may be altogether refused cover or may have to pay a premium as much as 3 times what the cost of a standard cover.

3.   Financial Planning must include Life Insurance

Insurance is an integral part of a financial planning. There are a number of instruments to enhance your wealth but only one to protect it. You wouldn't think twice before buying a lock for your house or valuables, but we often don’t think about protecting our wealth and sources of our wealth. There is no greater sources of wealth than one’s life. It is imperative that you protect your wealth thru a life insurance early. Life insurance should be an integral part of your financial planning.

Also look at 5 questions to ask before buying life Insurance.